What Is Acker's Share of the Intra-Entity Inventory Gross Profit

question 15

Multiple Choice

What is Acker's share of the intra-entity inventory gross profit that should be deferred on December 31, 2018?

• A) $ 1,600.
• B) $ 8,000.
• C) $15,000.
• D) $20,000.
• E) $40,000

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specific period of time.

Normal Profit

The profit level that allows a business to cover its costs, including the opportunity cost of capital, without making an economic profit.

Economic Cost

The total cost of choosing one action over another, including both explicit costs (direct payments) and implicit costs (opportunity costs).

Uninsurable Risks

Risks that are too unpredictable or certain to occur, making it impossible for insurance companies to accurately price or offer coverage.